Inflation unexpectedly fell last month despite fears about rising petrol prices ahead of the Bank of England’s next decision on interest rates.

The consumer prices index (CPI) dropped to 6.7pc in August, down from 6.8pc in July, according to the Office for National Statistics.

The Bank’s own forecast previously predicted that CPI inflation would rise to 7.1pc.

The fall came even as motorists contended with rising fuel prices amid a global surge in the price of oil, driven by supply cuts in Russia and Saudi Arabia.

Bank of England Governor Andrew Bailey had suggested earlier this month that inflation could increase given that prices went down in August last year but up this August.

Policymakers will decide whether to raise interest rates from 5.25pc on Thursday.

Read the latest updates below.